Yes, there are a couple of ways you can get a tax break by reporting the repayment on your current year tax return:
- Take a simple deduction of the repaid income from the current year’s income (this is the easiest option for taxpayers who itemize their deductions).
- Use TurboTax CD/Download to calculate the amount of tax you overpaid and take a refundable credit. This is the more valuable option, though it requires a bit more work.
Click this link for detailed instructions for entering your Claim of Right Repayment using both methods.
This link has instructions and screenshots to help you.
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